Mandatory conversion to Private Limited or Public Limited
To maintain the status of a One Person Company (OPC), there are specific capital limitations in place. The share capital cannot exceed fifty lakh rupees and should not surpass two core rupees in the business operations. If this limit is breached, the OPC must transition into a Private or Public Limited Company within six months.
OPCs offer unique opportunities and advantages that are not available to traditional private companies. They are exempt from certain provisions related to meetings, such as General Meetings, Extraordinary General Meetings, and Notice Convening to General Meetings. However, OPCs with OPC registration in Chennai provide their owners with the benefits typically associated with private limited companies. This includes access to credit, bank loans, limited liability, and legal protection for the business, and entry into the market, all under a single registration.
It's important to note that an individual can only start one company under the name of an OPC. This ensures the integrity and purpose of this specific business structure.
For proposed directors and shareholders who are Indian citizens, the following documents are required:
Proposed director & Shareholder - Indian Citizen:
- PAN Card
- OPC registration in Chennai needs Aadhar Card.
- Proof of Address – This can be a recent Bank Statement, Telephone Bill, Electricity Bill, or Mobile Bill (not more than two months old).
- Passport Size Photo.
Additionally, for the registered office, these documents are necessary:
- If the office is on rent, a rental agreement is mandatory.
- Online OPC registration in Chennai needs an Electricity bill (no older than two months) is required.
- In the case of a rented office, the occupant must provide a No Objection Certificate (NOC) from the landlord to operate the business.
These documents are essential for the smooth and legal registration of your company.
Salient Features of a One Person Company:
- It's a distinct legal entity, capable of property ownership and borrowing like an individual.
- Small investors can form a company individually, being the sole promoter, shareholder, and director.
- OPC has perpetual succession, ensuring continuity.
- Minimal legal compliance and corporate governance requirements.
- Shareholders appoint a nominee to replace the member in case of death or disability.
- No capital restrictions; OPC can have OPC registration in Chennai with minimal capital.
- The company name must include "OPC" for identification.
- Minimum one director is needed to form a board.
- OPC enjoys concessions on board meetings and annual general meetings.
- It can convert to a Public or Private limited Company if share capital exceeds Rs. 50 lakhs or annual turnover exceeds Rs. 200 lakhs for three consecutive years.